Real estate is local, local, local. There may be discernable trends in the national real estate market, the California real estate market, or the Silicon Valley real estate market – but all of that may or may not be reflective of what is happening with your house or home today.
Los Gatos is a case in point. The view of “the town” is entirely different from a view of its parts taken separately. Recently I spent a few hours pouring over the data and learned how dramatically different the market is from the 95030 zip code to the 95032 zip code.
It all depends on how you search.
If you are analyzing all of the addressess with “Los Gatos” as the mailing address, you will get homes in town and also properties that are not part of the town but rather are in the Santa Cruz Mountains (such as Redwood Estates, Aldercroft Heights, Chemeketa Park, etc.). Those homes have a 95033 zip code and really should not be considered as the “Los Gatos real estate market” because the mountain communities are entirely different.
In town, the schools tend to define desireability. Most of 95032 does not have the exceptionally highly regarded Los Gatos Schools and right now, that is most likely what is causing the huge gulf between the markets.
I invite you to view my detailed post and check out the large number of graphs on my Live in Los Gatos site:
Understanding the Los Gatos Real Estate Market Trends and also see Los Gatos real estate market trends